Daily California P&C Insurance News

State bill would mandate insurance for homeowners who reduce wildfire risks

A new California bill (SB 1076) would require insurers to offer and renew coverage for homes meeting wildfire-safety standards starting January 2028, with penalties for noncompliance. The legislation aims to help fire survivors like those from the Eaton Fire secure insurance after rebuilding to high safety standards, though insurers warn it could drive carriers from the market.[1]

2026 Home Insurance Rates: Will SoCal’s Record-Wet Months Push Premiums Higher?

California home insurance premiums are projected to rise 20% or more through 2025 due to surging reinsurance costs, wildfire losses, and recent wet weather increasing flood and landslide risks. Regulatory changes now allow better alignment of rates with catastrophe models, potentially leading to higher premiums in high-risk areas but more carrier participation long-term.[2]

Assembly Insurance Committee Oversight Hearing: The California FAIR Plan

The California FAIR Plan, serving as the insurer of last resort, has seen policies surge with expanded coverage limits up to $20 million per structure amid market failures in high-risk areas. Ongoing litigation and regulatory pushes aim to broaden FAIR Plan offerings beyond fire insurance to include theft, liability, and water damage for better homeowner protection.[4]

‘Structural Shift’ Occurring in California Surplus Lines

California’s surplus lines market has grown over 500% in new policy counts as admitted carriers pull back from high wildfire-risk areas, spilling over into the FAIR Plan. State regulators are pushing FAIR Plan reforms for better claims handling and coverage while approving rate hikes like 6.9% for CSAA and Mercury to encourage writing in risky zones.[5]

Opinion: Private insurers are holding CA homeowners hostage

California Insurance Commissioner Ricardo Lara approved 6.9% rate increases for Mercury Insurance and CSAA, affecting over 1 million homeowners amid ongoing market strain. Critics argue these hikes exacerbate affordability issues as private carriers limit coverage, forcing more homeowners into the costly FAIR Plan.[8]